US Agricultural Company Cargill Reports Record Net Profit 'Thanks to Soaring Corn and Soybean Grain Prices'

by Park Pyunghee

Published 09 Aug.2021 15:35(KST)

Cargill Fiscal Year Net Income Trend [Image Source= Bloomberg]

[Asia Economy Reporter Park Byung-hee] Bloomberg News reported that Cargill, the world's largest agricultural company in the United States, posted its highest profit in its 156-year history during the 2021 fiscal year (June 2020 to May 2021). This was thanks to the sharp rise in prices of grains such as corn and soybeans.

Cargill's net profit for the 2021 fiscal year reached $4.93 billion. This was a 64% increase from $3 billion in the 2020 fiscal year, setting a new record high. The previous record was $3.95 billion recorded in the 2008 fiscal year.

The company achieved its highest-ever performance benefiting from the commodity supercycle just before the global financial crisis, and it has benefited from the commodity supercycle again after 14 years.

The price of corn futures rose 72% compared to a year ago, and soybean prices increased by 53%.

Cargill's sales for the 2021 fiscal year were $134.4 billion, about $20 billion more than the $114.5 billion in the 2020 fiscal year.

Cargill is a member of the 'ABCD' group, the four major grain companies that control 80% of the global grain market, and employs 155,000 people in about 70 countries worldwide. In the ABCD group, C stands for Cargill.

Founded in 1865 by William Wallace Cargill, the company is still privately held with the Cargill family owning more than 90% of the shares. While primarily trading grains, it also deals in steel, iron ore, gas, and oil.

Cargill had disclosed its performance for over 20 years but announced last year that it would no longer disclose its results. However, it still provides performance information to securities firms and creditors, and Bloomberg obtained this information and reported on Cargill's fiscal year results.